State Drug Transparency Laws | A 2026 Update | Simplefill

by Simplefill

Many American lawmakers and voters have become increasingly concerned about drug price transparency. As medication costs continue to rise and people struggle to pay for lifesaving care, some states have passed legislation to bring more transparency to how medications are priced.

What Are the Main Updates to State Drug Transparency Laws in 2026?

In some situations, manufacturers are required to disclose when they increase drug prices. Legislation throughout the country has lowered the reporting thresholds for price hikes. Additionally, Connecticut and Virginia are two states that now require manufacturers to report more information on high-cost new drugs.

As of 2026, more than 20 states mandate reporting on the rebates that manufacturers offer to pharmacy benefit managers (PBMs). This helps to reveal net medication costs with the hope of maintaining fairer rates.

Recently, the federal 340B Drug Pricing Program has been under more scrutiny. This program requires that drug manufacturers sell outpatient drugs at reduced prices to eligible healthcare providers, allowing them to serve more low-income patients. States like Indiana and Idaho are passing laws to ensure that those discounts make it to safety-net healthcare providers.

Additionally, states like New York, New Mexico, and New Jersey are developing further rules for disclosures and data granularity.

California Updates

California Code of Regulations Title 22 Section 96082 allows manufacturers of pharmaceutical products to appeal if they have received notice of an accrued penalty because they failed to report price increases when required to.

Louisiana Updates

Louisiana now requires drug manufacturers to let the state’s commissioner of insurance know when a drug with a wholesale acquisition cost (WAC) of $100 or more has experienced a price increase of at least 50% for a 30-day supply. These notifications must be made in writing, via email.

New York Updates

In New York, manufacturers must file notice within 60 days of a price increase for a prescription drug with a WAC of at least $40 for a course of treatment if the cost has risen more than 16% over a 24-month period.

Another New York law requires all PBMs to register with the state. They must also disclose information regarding their finances and operations.

New Mexico Updates

New Mexico’s Prescription Drug Price Transparency Act requires consistent reporting from drug manufacturers, authorized health insurers, PBMs, and pharmacy services administrative organizations.

Manufacturers must report on brand-name drugs with a WAC of $400 or more for a month’s supply, as well as medications that undergo significant price hikes. They must also report any new drugs that have a WAC that exceeds the Medicare Part D specialty tier threshold.

New Jersey Updates

In New Jersey, drug manufacturers must now notify the New Jersey Division of Consumer Affairs regarding brand-name drugs with a WAC that has increased by at least 10% within a 12-month period. They must also report new drugs with a WAC of $670 or more per unit.

PBMs are also forbidden from “spread pricing.” This occurs when PBMs profit from the difference between what they charge a health insurer and what they reimburse a pharmacy.

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Frequently Asked Questions

Want to know more about price transparency laws in the United States? We’ve got you covered.

What Are Pharmacy Benefit Managers?

Pharmacy benefit managers are businesses that manage drug benefits for employers, health insurers, and government programs. They negotiate drug prices with manufacturers, help develop drug formularies, process claims, and strive to control prescription drug costs for their clients.

Since PBMs don’t usually disclose the rebates they receive from manufacturers, it’s often difficult to know whether these savings make it down to customers or whether the PBMs keep them as profit.

Are There Federal Drug Price Transparency Laws?

Yes, there are federal laws that require businesses to disclose what you should be paying for prescription medications for conditions like congestive heart failure, asthma, and COPD. These include Transparency in Coverage rules and the Medicare Drug Price Negotiation Program.

One proposed law, the Drug-price Transparency for Consumers Act, would require pricing information on direct-to-consumer ads if it is passed.